Bitcoin Cash price Analysis: BCH/USD breaks out towards $300

Bitcoin Cash is leading the recovery on Saturday with a 4% growth.  From the opening value of $260, BCH is currently exchanging hands at $271. The rest of the cryptocurrency market is mixed red and green. Bitcoin (BTC), for instance, is down 1.31%, NEO is down 2.87%, and Bitcoin Gold 0.33%. The biggest single digit gainers are IOTA, up 6.57%, BCH and Ripple 1.97%.

From a technical perspective, Bitcoin Cash is likely to continue trading upwards within the ascending channel. The price is currently battling the resistance at the 38.2% Fibonacci retracement level taken between the last swing high of $499.05 to a swing low of $137.45. The same level is home to the 200-day SMA. For BCH to head for $300 this seller congestion must be dealt with.

The applied technical indicators such as the RSI and the MACD clearly show that it is the bulls’ turn. Bullish interest is bound to grow as the RSI enters the overbought region (70) and the MACD moves higher within the positive territory.

On the downside, a price reversal will seek refuge initially at $270. If push comes to shove and this zone is broken, the next support target is $250, the channel support, 50-day SMA and the former critical level at $200.

BCH/USD daily chart